A US multinational technology company that provides products and services to the Israeli military and has a large presence in Israel.
Intel is a major player in the Israeli economy. In 1974, only 6 years after it was founded, Intel opened a design and development center in Israel, the first outside the U.S. By the 2010s, Intel became the largest tech employer in Israel, employing some 10,000 people as of 2025.
By its own accounts, between 1974-2021, Intel has invested $27 billion in the Israeli economy, and its exports from Israel have consistently accounted for 3.5%-5.5% of Israel's total exports. The value of Intel's property, plant, and equipment in Israel is third only to its assets in the U.S. and Ireland and represents almost 10% of its assets globally.
Intel’s main manufacturing facility in Israel, a chip factory in Kiryat Gat, is in the Naqab/Negev on the land of two Palestinian villages that were destroyed in the 1948 Nakba: Iraq al-Manshiyya and Al-Faluja. Intel chose to operate there because Israel incentivizes multinational companies to operate in the Naqab as part of its ongoing efforts to “Judaize” the area, seeing the large Palestinian population there as a demographic threat.
Indeed, Intel has relied on government grants and subsidies for decades. In 1999, the Israeli government gave Intel a $600 million grant to set up its Kiryat Gat factory. Over time, Intel expanded this factory and built others in the same location, receiving additional significant government grants, subsidies, and tax breaks at every step of the way.
In December 2023, two months into the Gaza genocide, Intel announced a major expansion of the factory with a $25 billion investment, the largest ever by any company in Israel, also partially funded by the Israeli government. This announcement was portrayed by Israeli government officials as a demonstration of Intel’s trust in the Israeli economy during wartime. In June 2024, the company halted the expansion plan without an explanation. However, Intel has acknowledged that the factory’s location, very close to Gaza, is a potential risk to its investors, as it is “not insured for business interruptions.”
Military Connections
Intel markets its products for military applications and has sought large government grants to design advanced semiconductors for the U.S. military and intelligence agencies.
The company’s microprocessors are integrated into multiple weapon systems, including Israeli ones. For example, Elbit Systems, Israel’s largest weapons manufacturer, uses an Intel i7 Quad Core processor in its MK7 Enhanced Tactical Computer. The Israeli military uses Elbit’s tactical computer series in its Merkava battle tanks and other major weapon systems.
In addition, Israel’s state-owned weapons manufacturer Israel Aerospace Industries has offered to its managers a course about technological innovations, which it developed in 2019 in collaboration with Intel and the Israeli Air Force.